[Quote No.24293] Need Area: Money > Invest "Buy value, not market trends or the economic outlook. A wise investor knows that the stock market is really a market of stocks. While individual stocks may be pulled along momentarily by a strong bull [rising] market, ultimately it is the individual stocks that determine the market, not vice versa. All too many investors focus on the market trend or the economic outlook. But individual stocks can rise in a bear [falling] market and fall in a bull [rising] market. The stock market and the economy do not always march in lockstep. Bear markets do not always coincide with recessions, and an overall decline in corporate earnings does not always cause a simultaneous decline in stock prices. So buy individual stocks, not the market trend or economic outlook." - John TempletonFounder of the Templeton Mutual Fund Organization and the John Templeton Foundation which gives an annual prize of more than $1 million for achievement in religion, in a similar way to the way the Nobel Prize does in other areas of achievement.Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24294] Need Area: Money > Invest "Buy a number of stocks and bonds – there is safety in numbers [diversification]. No matter how careful you are, no matter how much research you do, you can neither predict nor control the future. A hurricane or earthquake, an unexpected technological advance by a competitor, or a government-ordered product recall – any one of these can cost a company millions of dollars. Also, what looked like such a well-managed, company may turn out to have serious internal problems that weren’t apparent when you bought the stock. So you must diversify – by company, by industry, by risk, and by country [being aware of currency conversion risk]." - John TempletonFounder of the Templeton Mutual Fund Organization and the John Templeton Foundation which gives an annual prize of more than $1 million for achievement in religion, in a similar way to the way the Nobel Prize does in other areas of achievement.Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24298] Need Area: Money > Invest "Sometimes you won’t have sold when everyone else is buying and you’ll get caught in a market crash [bust, severe slump] such as in 1987. There you are , facing a [large 20 percent] loss in a single day. Don’t rush to sell the next day. The time to sell is before the crash, not after [unless you can justify that the market has still significantly further to drop]. Instead, study your portfolio. If you didn’t own these stocks now, would you buy them after the market crash? Chances are you would. So the only reason to sell them now is to buy other, more attractive stocks. If you can’t find more attractive stocks, hold onto what you have." - John TempletonFounder of the Templeton Mutual Fund Organization and the John Templeton Foundation which gives an annual prize of more than $1 million for achievement in religion, in a similar way to the way the Nobel Prize does in other areas of achievement.Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24299] Need Area: Money > Invest "The only way to avoid mistakes is not to invest – which is the biggest mistake of all. So forgive yourself for your errors. Don’t become discouraged and certainly don’t try to recoup your losses by taking bigger risks. Instead, turn each mistake into a learning experience. Determine exactly what went wrong and how you can avoid the same mistake in the future. The big difference between those who are successful and those who are not, is that successful people learn from their mistakes and the mistakes of others. [John Templeton has said that one-third of his investments do not work out but that the remaining two-thirds have made him rich.]" - John TempletonFounder of the Templeton Mutual Fund Organization and the John Templeton Foundation which gives an annual prize of more than $1 million for achievement in religion, in a similar way to the way the Nobel Prize does in other areas of achievement.Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24301] Need Area: Money > Invest "An investor who has all the answers doesn’t even understand all the questions. A know-it-all [arrogant, non-humble] approach to investing will lead, probably sooner than later, to disappointment if not outright disaster. Even if you identify an unchanging handful of investing principles, we cannot apply these rules to an unchanging universe of investments – or an unchanging economic and political environment. Everything is in a constant state of change and the wise investor recognizes that success is a process of continually seeing answers to new questions." - John TempletonFounder of the Templeton Mutual Fund Organization and the John Templeton Foundation which gives an annual prize of more than $1 million for achievement in religion, in a similar way to the way the Nobel Prize does in other areas of achievement.Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24303] Need Area: Money > Invest "Do not be fearful or negative too often. For 100 years optimists carried the day in U.S. stocks. Even in the dark 1970s, many professional money managers and many individual investors made money in stocks, especially those of smaller companies. There will, of course, be corrections [slumps], perhaps even crashes [busts]. But, over time, our studies indicate stocks do go up and up and up. As national economies become easier and cheaper, business is likely to boom. Trade and travel will continue to grow. Wealth will increase and stock prices should rise accordingly. The financial future is bright and the basic rules of building wealth by investing in stocks hold true...it’s still buy low, sell high." - John TempletonFounder of the Templeton Mutual Fund Organization and the John Templeton Foundation which gives an annual prize of more than $1 million for achievement in religion, in a similar way to the way the Nobel Prize does in other areas of achievement.Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24311] Need Area: Money > Invest "[When you are considering investing in a company see what the staff are doing...] An investment by more than one insider [company director, manager, executive or other employee] totalling at least $50,000 for smaller companies and at least $100,000 for larger firms [is considered by some investors to support their own independent decision to invest in the company as insiders are privy to the latest often secret developments within the company and are in the best position to know if the company is going to do well in the future. It should never be forgotten though, that insiders have been wrong before and therefore this confirmation is not infallible.]" - Jonathon MorelandDirector of Research, Insider TraderAuthor's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24314] Need Area: Money > Invest "This [in 1980s]...was the era of the raging Japanese bull, when the Tokyo Stock Exchange overtook New York as the world’s largest. Property prices and the yen [currency] were both soaring, and it appeared that a combination of Japanese money and technology was set to conquer the world. Fund managers flocked to Tokyo … Yet there was one American investor [John Templeton, founder of Templeton Mutual Fund Organization] who expressed little interest in the Tokyo market..he declared he could find little value in Japan. In 1988 he even said the Japanese market could be facing a decline of 50 percent or more...he was of course right. The Japanese bull market turned out to be one of the greatest speculative investment bubbles the world has ever seen. The Nikkei Stock Average began its plunge at the start of 1990, and as I write, in July 2000, it remains at less than half its 1989 peak." - Martin RothQuoted from book by Nikki Ross, ‘Lessons From The Legends of Wall Street’Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24315] Need Area: Money > Invest "Value investing is largely the creation of money manager Benjamin Graham...He developed a set of theories [after experiencing the great 1929 stock market crash] stressing the importance of valuing a company independently from the price set on it by the market. A share in a company is just that – a share of the company – and as such its true value lies in how well the company performs. At times this might accord with the market value, but at other times it may not. Graham thus taught that investors should seek out companies that the market had priced below their real value." - Martin RothAustralian Investment writer. Quoted from book by Nikki Ross, 'Lessons From The Legends of Wall Street'Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24318] Need Area: Money > Invest "Marketing professor Robert Peterson researched customer satisfaction for years but found no evidence to prove it leads to repeat business. Then, Peterson discovered that a connection between customer satisfaction and repeat business occurs when an emotional link develops between the customer and the product or service...High-perceived value of products tends to give companies the ability to pass on higher costs to customers during inflationary times, and to sell products during recessions when customers might otherwise cut back on purchases [This emotional connection and pricing power gives competitive advantages to the company that can make it a good long-term investment]" - Nikki Rossformer Chairperson of the International Association for Financial Planning, (South Florida chapter)Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24319] Need Area: Money > Invest "[Before investing in a company]
Study sales and earnings of a company and how they are derived...
Understand the firm’s products or services, the company’s position in its industry and how it compares with the competition...
Does the company have top-quality, brand-name products used repeatedly and high customer loyalty?
Does the company have a wide competitive edge and barriers to potential competition?...
Is the business generating good owner earnings – free cash flow?
Does the business have a long-term history of increasing sales and earnings...?
Has the company achieved a 15 percent or better return on shareholders’ equity..?
Has the company maintained a favourable profit margin compared with the competitors’ profit margin...
What are the risks of the business?" - Nikki Rossformer Chairperson of the International Association for Financial Planning, (South Florida chapter)Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24321] Need Area: Money > Invest "The standard calculation for cash flow, a popular measure used in conjunction with earnings [to evaluate the health of a company], is net earnings per share plus depreciation per share, a noncash deduction from earnings to allow for wear and tear or obsolescence of equipment and other assets. Buffet uses a similar calculation...but he also subtracts capital spending per share, which is the expense required to maintain and upgrade plants and equipment. He calls this calculation owner earnings...[When] investors also subtract the cash dividend paid to shareholders [the result is called free cash flows and represents what managers can spend at their discretion for the good of the company and shareholders]..." - Nikki Rossformer Chairperson of the International Association for Financial Planning, (South Florida chapter)Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24333] Need Area: Money > Invest "[Being aware of what happens in past booms and busts can help keep us aware of and manage the risks in share investing i.e.] The value of all the stocks listed on the NYSE in 1925 was $25 billion. By 1929, it was more than triple, almost 90 billion. Despite some warnings about an impending market correction and a weakening economy, the irrational optimism [that characterizes booms before they bust] continued...[In October 1929 the market fell]. By 1932 the market value of the stocks on the NYSE...[was]...less than 16 billion...[dropping some 81 percent - General Electric went from $400 in 1929 to $13 in 1932; U.S. Steel went from $262 in 1929 to $21 in 1932.]" - Nikki Rossformer Chairperson of the International Association for Financial Planning, (South Florida chapter)Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24334] Need Area: Money > Invest "Phil Fisher says that when he was about 12 or 13, he learned about the stock market. He considered the stock market an exciting game offering him an opportunity to choose people and businesses that could be successful and at the same time make a lot of money. Now a master of this game, Fisher has developed his talent for judging corporate executives and the profit potential of their firms...[other] investors also can develop judgment skills as they gain investment experience." - Nikki Rossformer Chairperson of the International Association for Financial Planning, (South Florida chapter)Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24335] Need Area: Money > Invest "The profit margin, an indicator of how efficiently management is running the company, shows the amount of sales being turned into earnings. In order to achieve strong profit margins, a firm should be increasing sales [and market share] while keeping costs and expenses low, resulting in higher profits [They should also be trying to develop at least either a quality and branding competitive advantage to give them pricing power so that inflationary cost increases can be added to the selling price, without reducing volume demand, or be aiming to become the lowest cost producer in their industry.] Operating profit margin [is slightly different being defined as] operating earnings (earnings from the main business as opposed to earnings from other sources such as income from investments) before interest, depreciation, and taxes, divided by sales, and expressed as a percentage. [Both margins should be studied to determine any trend and compared with competitors in the industry and other companies in the investment universe.]" - Nikki Rossformer Chairperson of the International Association for Financial Planning, (South Florida chapter)Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24340] Need Area: Money > Invest "Lower inflation and interest rates are generally positive for stocks. But when inflation heats up and the Fed [Federal Reserve] raises interest rates, this has a negative impact on stocks and can be poison for bonds, depending on how much and how often rates are raised. The Department of Labor (stats.bls.gov) reports the rate of inflation based on changes in the Consumer Price Index (CPI) and the Producer Price Indexes (PPI). The CPI measures changes in the price of food, housing, apparel, transportation, medical care, and other goods and services. The PPI, a family of indexes, measures changes in prices by domestic producers of goods and services – flour, cotton, steel mill products, lumbar, petroleum, natural gas, and other products." - Nikki Rossformer Chairperson of the International Association for Financial Planning, (South Florida chapter)Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24341] Need Area: Money > Invest "To determine if a company met his criteria [to invest in, Thomas Rowe] Price [Founder of the highly successful mutual fund and money management firm, T. Rowe Price Associates] would ask such questions as:
-Is management capable and respectable?
-Do the top executives and directors own a substantial amount of shares in the company? [which increases the likelihood that they will behave in shareholders’ best interests]
-Are the business’ products better than competitors and in demand by customers?
-Does the firm have a track record of increasing sales, earnings, and dividends [with strong free cash flow] ?
-Are profit margins favorable and sustainable?
-Is management earning a good return on the shareholders’ equity and total invested capital?
-Does the company have a good credit rating with low or reasonable debt?
-Does the firm have intelligent R[esearch] & D[evelopment] as evidenced by a track record of outstanding products?
-Is the company an industry leader with a competitive advantage?
-Does the company have good employee relations and benefits to attract and retain top-notch employees?
-Is the stock selling at a reasonable price relative to future earnings and the historical P/E...Price preferred to buy stocks close to or lower than the P/E of the general market and the stock’s five-year historical average annual P/E." - Nikki Rossformer Chairperson of the International Association for Financial Planning, (South Florida chapter)Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24342] Need Area: Money > Invest "There are four main levels of profit margins for a business that investors may look at [to determine if the company might make a good investment]...
-1 Gross profit margin [which shows how much of each dollar of sales is left over after subtracting costs, such as raw materials and labor costs, directly incurred in generating sales. It is calculated by subtracting the cost of goods sold from total sales and dividing by total sales.]
–2 Operating profit margin [which shows the relationship of operating earnings (profits of the firm’s main business before interest, taxes and depreciation – a noncash deduction to allow for wear and tear and the aging of plant and equipment, as well as other noncash deductions -as opposed to income from investments or other sources) to sales. Some research services include depreciation in this margin but the way they calculate it is always explained somewhere.]
-3 Pre-tax profit margin [which relates earnings before taxes to sales]
-4 Net profit margin [which shows the relationship of after-tax earnings to sales]. Although he [Thomas Rowe Price] may look at the other three levels of profit margins, Price would focus on the operating profit margin...
To determine the trend of margins, Price compared a company’s margins each year for five or more years." - Nikki Rossformer Chairperson of the International Association for Financial Planning, (South Florida chapter)Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24344] Need Area: Money > Invest "To monitor companies [owned], he [Wall Street legend, Thomas Rowe Price] paid attention to...warning signals [like]
-Decreasing sales,
-Declining earnings and profit margins...,
-Lower return on invested capital [and equity]...,
-Sharply increasing taxes,
-Negative changes in management,
-potentially detrimental government interference or unfavourable court decisions...,
-Saturation of markets,
-Increasing competition,
-Substantial increases in the cost of raw materials and labor...
[Also aware that firms have slowdowns due to industry weakness or the economy, he compared earnings of his holdings with competitors’ earnings and with growth of the overall economy. This helped him find distortions due to business cycles of recessions and recoveries and to determine the real trend in earnings]...
Declines in stock prices did not cause Price to sell. If he thought a firm had favourable future prospects, it was an opportunity to buy more." - Nikki Rossformer Chairperson of the International Association for Financial Planning, (South Florida chapter)Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24345] Need Area: Money > Invest "...it is important to be aware of the risks of bond investing. [There is Market Risk related to changing interest rates...] Rising interest rates are usually negative for stocks and can be even more detrimental for bonds. When interest rates rise, bond prices fall. This occurs because an existing bond’s fixed interest payments (at the lower rate called ‘coupons’) are not as attractive as bond yields with the new, higher fixed interest payments. Conversely when interest rates fall, bond prices go up as bonds paying a higher interest become more attractive...If you bought a bond with an 8 percent coupon and rates subsequently rose to 10 percent for similar bonds, your bond would normally decline in price to offer a yield close to the new rate to attract new investors. [There is also Credit Risk related to the risk that the bond issuer will default by failing to make timely payments of interest and principal to you. Two rating agencies – Standard & Poor’s and Moody’s are famous for rating risk and their ratings can help you decide. The higher the credit quality and rating, the lower the risk and the yield. If the creditworthiness of the bond issuer declines after you buy a bond, its price will likely fall to provide a higher yield to attract new investors.]" - Nikki Rossformer Chairperson of the International Association for Financial Planning, (South Florida chapter)Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24346] Need Area: Money > Invest "Asset Allocation Strategies for Different Types of Investors...The question of how much money to allocate [can be answered in principle by a simple formula which can then be modified by the individual’s particular requirements]...subtract an investor’s age from 100, which is then expressed as the percent to be allocated to stocks and the rest in bonds and cash reserves. This means someone age 20 would have 80 percent in stocks; age 50, 50 percent in stock; and age 80, 20 percent in stocks. Conceptually, younger people have more time for stocks to grow, can take more risk and can tolerate more volatility." - Nikki Rossformer Chairperson of the International Association for Financial Planning, (South Florida chapter)Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24347] Need Area: Money > Invest "[Just a few of the more notorious]...examples of bubbles [and slumps or excessively optimistic booms followed by excessively pessimistic busts which hopefully will help people better understand both the risks and opportunities of share investing and therefore the importance of value investing] include the U.S. stock market’s advance between 1921 and 1929 (when the market tripled in value between 1925 and 1929 prior to crashing from $90 million in capitalisation to $16 million by 1932) and the Japanese stock market, which reached a high of about 39,000 in 1989 and fell to a low of 14,000 in 1992." - Nikki Rossformer Chairperson of the International Association for Financial Planning, (South Florida chapter)Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24348] Need Area: Money > Invest "Prior to making investment decisions, [John] Templeton studied financial reports of purchase candidates, comparing a company’s financial numbers with those of its competitors. He evaluated government policies that might impact the business. He looked for a catalyst that could spark interest among investors, causing the company’s stock price to rise. A catalyst might occur when a company creates new markets, products or policies. Other catalysts could be potential mergers and acquisitions and favourable change within the industry." - Nikki Rossformer Chairperson of the International Association for Financial Planning, (South Florida chapter)Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image